Madison Investments, an investment advisor, released its “Madison Small Cap Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned 11.4% compared to a 5.2% return for the Russell 2000 Index and a 6.9% return for the Russell 2500 Index. All sectors except communication services and energy posted positive relative performance. Sector allocation was also additive, even though stock selection was primarily responsible for the fund’s outperformance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Madison Small Cap Fund featured stocks like Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in the first quarter 2024 investor letter. Headquartered in Washington, the District of Columbia, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) provides high-speed Internet access, private network, and data center colocation space services. On April 17, 2024, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) stock closed at $61.95 per share. One-month return of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was -1.20%, and its shares lost 8.09% of their value over the last 52 weeks. Cogent Communications Holdings, Inc. (NASDAQ:CCOI) has a market capitalization of $3.038 billion.
Madison Small Cap Fund stated the following regarding Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in its first quarter 2024 investor letter:
“Our worst performer on a relative contribution basis was internet service providerCogent Communications Holdings, Inc. (NASDAQ:CCOI). Cogent’s stock had a strong run into their fourth quarter report in February, however the results, although good, were not good enough for the elevated expectations. Ultimately, CCOI’s business is driven by internet traffic, which is driven by things like content on Netflix, hyperscale traffic, and AI generated traffic. We believe the correction is an overreaction and are confident the business fundamentals will eventually lead to better performance. The company has a defensible and significant cost advantage versus its competition and it is estimated that roughly 25% of the global internet traffic runs through Cogent’s network, making this business a rather strategic asset.”
An aerial view of an internet exchange point, illustrating the importance of an online service provider.
Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was held by 19 hedge fund portfolios, compared to 20 in the previous quarter, according to our database.
We previously discussed Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in another article, where we shared Alphyn Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
